General Dynamics to acquire Veridian

By Nick Wakeman

Jun 09, 2003

General Dynamics Corp. announced this morning that it plans to acquire Veridian Corp. for $1.5 billion.

The two companies signed a definitive agreement for Falls Church, Va.-based General Dynamics to pay $35 a share for each outstanding Veridian share. General Dynamics will also assume $270 million in Veridian debt.

Veridian of Arlington, Va., founded several years ago and has made a series of acquisitions of its own and went public last year. This morning its shares soared 27 percent, opening at $34.80, up from $27.35 at Friday's close. General Dynamics shares opened at $68.25, virtually unchanged. The deal is expected to close by Sept. 30.

Veridian is expected to have $1.2 billion in revenue in 2003 and has a contract backlog of $2.6 billion. General Dynamics said it expects Veridian's 2004 revenue to be $1.4 billion.

"This superb company significantly broadens our Information Systems and Technology group's customer base within the defense and intelligence arenas, and gives us a strong and well-established presence throughout our nation's federal, state and local emergency response communities," said Nicholas D. Chabraja, General Dynamics chairman and chief executive officer.

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